Shares in Halfords surged to a four-year high following an upward revision of the company’s annual profit forecast, driven by strong summer sales linked to unusually warm weather. The British retailer, known primarily for car accessories and cycling products, now anticipates pre-tax profits between £55 million and £65 million for the current financial year ending in March, exceeding previous expectations of around £52.6 million.

The company attributed the improved outlook to heightened demand across several seasonal product categories, including bicycles, camping equipment, and air-conditioning services. July and August trading at Halfords’ 370 stores continued to outperform earlier projections, supported by what the retailer described as “unusually warm summer weather,” which contributed to increased sales of products related to outdoor and automotive use. The boost was estimated to have added approximately £5 million to the profit total.

Halfords’ shares rose as much as 13% in early trading before closing 10.8% higher at 267p, valuing the company at about £590 million. This marks a significant milestone as share prices have not reached these levels since spring 2022, when the company experienced a surge in sales during the pandemic-driven cycling and outdoor activity boom. The firm’s stock has nearly doubled in value since Henry Birch took over as CEO in April, following his launch of the "Fit for the Future" strategic plan aimed at expanding its garage services division alongside its retail operations.

While Halfords has historically focused on car accessories and bicycles, its growing garage business, which provides car repairs and MOT services, represents a key part of its longer-term growth strategy. The retailer plans to use the positive momentum to accelerate investments in technology and marketing during the coming months.

Analysts noted that the profit upgrade reflects both the weather-related sales surge and underlying improvements in like-for-like sales and profit margins. Ben Hunt of Panmure Liberum emphasized that the upgrade is not solely a result of seasonal factors but is supported by broader business growth. Peel Hunt analyst Jonathan Pritchard suggested that while the impact of the summer heatwave on the retail sector as a whole remains uncertain, Halfords appears to have gained market share, benefiting from a rise in domestic holidays and increased consumer spending on staycation-related products.

Overall, Halfords’ strengthened profit forecast and stock performance highlight the retailer’s ability to capitalize on favourable market conditions and execute its strategic shift, despite ongoing challenges such as rising operational costs. The company is targeting further expansion of its garage network, aiming to open an additional 35 locations this year.